Raízen opens world’s largest 2G ethanol plant

Raízen, the world’s largest sugarcane ethanol producer, has opened its second plant for Second Generation (2G) Ethanol in the city of Guariba, in the state of São Paulo. The milestone project reinforces the company’s commitment to sustainability and energy transition.

Recognized for being one of the biggest large-scale producers of sugarcane by-products, such as ethanol and bioelectricity, Raízen reinforces its commitment to biofuel to meet the growing global demand for a low-carbon economy with the opening of the Bonfim Bioenergy Park.

The new plant has an annual production capacity of 82 million liters of cellulosic ethanol, aimed at supplying markets with strict decarbonization mandates. The project will also create about 1,000 direct and indirect jobs in the area, contributing to local development and improving the quality of life of the neighboring communities.

Due to its high photosynthetic efficiency and ability to regenerate, sugarcane is an ideal raw material for the production of biofuels. By using a proprietary technology, Raízen produces Second-Generation Ethanol from so-called lignocellulosic waste, such as bagasse and sugarcane straw, which were previously underutilized or discarded. This innovative process allows the production of ethanol without the need to increase the area under cultivation, promoting a more sustainable and efficient agriculture.

Ethanol produced from waste is very versatile compared to other biofuels and becomes raw material for several industries. The main centers of demand for Second-Generation Ethanol are in Europe, United States and Japan, which look for cleaner alternatives mainly for industries that are difficult to decarbonize.

The Second-Generation Ethanol produced by Raízen fuels the cars of the main motor racing categories in the world and is used in cosmetics and perfumes with more sustainable formulas than traditional alcohol.

The energy transition aims to reduce gradually the consumption of raw materials of fossil or non-renewable origin. The use of agricultural waste in the production of Second-Generation Ethanol contributes significantly to reducing greenhouse gas emissions, as the CO2 captured by the cane during its growth is recycled in the biofuel production process.

This closed carbon cycle makes Second-Generation Ethanol a sustainable alternative to fossil fuels, helping to mitigate the impacts of climate change, with an 85% lower carbon footprint than gasoline and a 30% lower carbon footprint than regular ethanol.

Raízen has stood out as a leader in the bioenergy industry, with a diversified portfolio that includes the production of ethanol, bioelectricity, biogas and other renewable solutions. The company continuously invests in research and development to improve its technologies and expand its operations sustainably.

In February 2024, the company issued two $1.5 billion green bonds to finance renewable energy and energy efficiency projects. In March, the company launched a commercial operation to advance future revenues linked to a long-term Second-Generation Ethanol contract in the amount of US$ 617 million, a milestone that will allow Raízen to license new plants in the future, such as the Bonfim plant, which is equipped with cutting-edge technologies. The Bonfim plant also incorporates energy co-generation systems, which use sugarcane bagasse to produce electricity, further increasing the efficiency of the process and reducing environmental impact.

Raízen is widely recognized for its leadership and innovation in the renewable energy sector. CEO Ricardo Mussa is an active advocate of energy transition and leads one of B20 Brazil’s working groups on energy transition and climate. His dedication in these global discussions highlights Raízen’s importance in developing sustainable solutions for the future of energy.

Raízen represents a unique opportunity for investors to take part in a growing industry with strong potential for long-term return. The Bonfim plant is a clear example of the company’s commitment to innovation and sustainability, offering a feasible and profitable solution for biofuel production.

Raízen continues to expand its operations and develop new technologies, consolidating its position as one of the most innovative and sustainable companies in the bioenergy industry. The opening of the Second-Generation Ethanol plant in Bonfim is an important step in this journey, reaffirming the company’s commitment to a cleaner, more sustainable future.